Apple predicted to launch a new 4" iPhone in 2016

Ming-Chi Kuo, an analyst at KGI Securities, has released a new report outlining predictions of Apple’s next device launches. Beyond the likely iPhone 7 and 7 Plus we likely to see next year, Kuo predicts that Apple plans to revert to producing a smaller 4″ iPhone.
Kuo speculates that Apple is developing a smaller device that resembles “an upgraded iPhone 5s”. The device is said to be targeted for launch in the first half of the year and will arrive equipped with an A9 processor.
Kuo went on to clarify: “As there is still demand for a 4-inch model, we believe Apple will upgrade this product line. Because the 5s is more popular than the 5c, we think Apple is likely to launch an upgraded iPhone 5s. We predict Apple will mass-produce this new 4-inch mdeol in 1H16 with metal casings. In order to make the current iOS 9 or next-generation iOS 10 run smoothly, Apple may adopt an A9 chip for this new phone.”
Kuo further posits that Apple will not include 3D Touch support on the new 4″ iPhone so as to keep it differentiated from the 6s and 6s Plus.
What are your thoughts on Apple’s potential decision to revert to producing a 4″ model? Should this device carry on the ‘c’ line? Let us know in the comments below!